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Questions for Your Accountant Before You Start a Business

Questions For Your Accountant Before You Start A Business | Lofa Consulting

Not all those who start a business have a business degree. And not all those who give business advice are business consultants. Aside from the usual accountant services like tax preparation and planning, your accountant can also be a major source of advice on how to start a business and make it succeed. If you know the right questions to ask, they can come to you with both knowledge and experience. Read on below to find out the top questions you should be asking your accountant before you start a business.

1. Am I really a business?

Not all “businesses” should be called a business. A business is an organisation or entity engaged in commercial, industrial, or professional activities that makes enough profit. There are times when a “business” does not make enough money or is just actually a hobby for it to be called a business. Ask your accountant if what you want to start or have just started can be considered a business. This might save you money and hard work you don’t need to do as there is a lot of paperwork and expenses involved in putting up an actual business.

2. What is my business set-up?

Are you a sole trader, a partnership, a company, or a trust? Each kind of set-up will have pros and cons. Ask your accountant what set-up would be best for your business in mind. 

3. What will be the costs of setting up and maintaining a business?

Aside from the initial establishment of your business, it would be best to also ask the estimated maintenance costs of your business. Maintenance costs examples are insurances,bookkeeping, rent, vehicle, mobile phone, and utilities such as electricity and water. Also ask your accountant what protection will the planned business set-up or structure offer if it encounters major problems. 

4. Should I apply for Australian Business Number and Personal Services Income?

Not all businesses need and can apply for Australian Business Number (ABN) and Personal Services Income (PSI). Ask your accountant if you need them. 

5. Will I need to register for the Goods and Services Tax (GST)?

Goods and services tax (GST) places a tax of 10% on most goods and services in Australia. If your business is registered for GST, you have to charge this extra money (one-eleventh of the sale price) from your customers then pay this to the Australian Taxation Office (ATO).

6. What insurance will I need for my business?

Businesses will need some form of insurance. Your business should have them in place before you start. Among the common ones are: 

7. Does my business plan sound like it has potential to succeed?

Your accountant will not directly tell you whether the business is going to succeed or not, but they can give you some critical feedback. A good accountant will give you their honest opinion on the matter and advise you on some points to consider before you proceed. But, at the end of the day, you will be the one that makes the decision to push through or not and not your accountant.

Questions For Your Accountant Before You Start A Business second | Lofa Consulting

Start Your Business With Lofa Consulting!

Starting a business can be very tedious and confusing. Hiring a business consultant and accountant to help you start your business is a very wise decision. Stop typing “good tax accountant near me” or “small business accountant near me”! Lofa Consulting offers both! Aside from small business and accountant services in Melbourne,  we conduct effective webinars and workshops for you and your employees. You might also want to look into our business web design and development for your own business.

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